A memorandum of understanding between the South Valley Petroleum Holding Company and a UAE company to start the economic studies necessary for establishment of a package of new projects to develop the Gulf of Suez area with UAE investments reaching nearly USD 5.3 billion has been signed.

The agreement was witnessed by Minister of Petroleum and Mineral Resources Eng. Sherif Ismail.

The package of new projects includes a project to generate electricity with the use of solar and wind energy or clean coal, a water desalination plant project as well as an industrial zone for specialized companies with the purpose of maximizing the value-added of mineral raw materials available in the Gulf of Suez and the Red Sea.

Minister Ismail stressed that the new projects with the Emirati side comes in activation of the State's economic vision to develop new areas and offer the available investment opportunities for serious investors for establishment of important economic projects and expand establishment of infrastructure projects.

The Minister explained that these projects reinforce the Egyptian government's policies to maximize the use of renewable energy and restructuring of the current energy mix to include new sources besides petroleum and gas.